Thank you. My question was relating to the U.S. operations. If you can highlight the update on any profitability, how confident we are of breaking even in F Y '27 and to what extent? And secondly, I think in the order pipeline, you mentioned that there is some order enquiry for small module reactors as well in the U.S. If you can also throw some light on that.
Questions across 5 calls
Raj Shah
ENAM AMC
Triveni Turbine Limited
Elecon Engineering Company Limited
Thank you for the opportunity. My first question was, sir, on the revenue front, if we see on the export side for the quarter, we have largely maintained what was there in the same quarter l ast year. But when it comes to gears, especially in domestic gears, the revenues are down by 27%. So within gears that too in the domestic geography, exactly where are we seeing such kind of delays in dispatches where customers are not ready to take up the delivery? Can you be a little specific in sharing your thoughts?
Got it. Okay. And this delay in orders was it specific to any large order or it was broad -based within the steel sector that you are talking about?
Okay, sir. My first question is regarding the gross margins. So, if you see the gross margins of 43% that we reported in this quarter is lowest in last 5 years. I know you cited some reasons relating to customer deferments and product mix, but can you throw some light on exactly where big customers visit international or do mestic and product mix changes. As you mentioned, engineered products in the CP business were 52%. I am trying to understand why the 600 -700 bps fall in gross margins according to this quarter?
Okay. So just to follow up with that, you said 1% you attribute towards competitive scenarios. Now, the amount that you told regarding the Indian Navy order, if you can attribute some percentage to that and whether this will be beneficial for us in the future orders of Indian Navy?
My first question was, sir, in the defense front, there was this P -17 Bravo large order that you mentioned about. And there was another order relatively of a smaller size around INR200 crores, about which we mentioned in the earnings call post Q1 results. Sir, so any update on that order?
Excellent. Okay. Another question was, sir, during the previous call, you mentioned that there was some pain point in the sugar sector when it comes to -- in the domestic space when it comes to ordering. So, any progress that has happened in the sugar sector on August?
So my first question was regarding the brand building activities and increase in employee cost, which led to lower margins in this quarter. If you can explain where this cost was spent in which areas and what was the quantum?
Okay. Got it. Another question was on borrowing cost, there was an increase las t year same quarter, it was INR 2 crores. This year, it was INR 6 crores. So I was just trying to get the sense of what it could be for the entire year because as per March '25 balance sheet , our borrowings have increased?